MENA’s IPO landscape, marked by resilience and sustained momentum, achieved close to $1 billion in total proceeds through five initial public offerings (IPOs) in the third quarter of 2024. While global IPO activity experienced a slowdown, the MENA region has displayed contrasting strength, particularly with a steady rise in listings on various regional exchanges, signifying robust investor demand and a supportive market environment. The third quarter’s fundraising value increased substantially, reaching nearly $930 million, predominantly from listings in Saudi Arabia and the UAE. Analysts attribute this performance to strong governmental support, favorable economic policies, and a concerted effort by regional markets to attract local and foreign investors.
A key driver behind the surge was the UAE’s Abu Dhabi Securities Exchange (ADX), which hosted the quarter’s largest IPO by NMDC Energy, securing $877 million. NMDC Energy’s IPO alone constituted a significant share of the total IPO value for the quarter, reflecting ADX’s position as a burgeoning hub for substantial listings and offering a highly competitive platform for local companies. As such, ADX continues to draw high-profile listings that contribute not only to the exchange’s growth but also to Abu Dhabi’s vision of establishing itself as a center for high-value IPOs and sustainable finance. This trend aligns with broader economic strategies in the UAE, especially as the country enforces regulations aimed at bolstering environmental, social, and governance (ESG) practices.
Saudi Arabia led the MENA region by number of listings, with three IPOs on its Nomu–Parallel Market. Total proceeds from these listings, which included Tharwah Human Resources and ASG Plastic Factory, amounted to around $27 million. The focus on Nomu, an alternative market aimed at facilitating access for small and medium enterprises (SMEs), reflects Saudi Arabia’s efforts to diversify its economy and encourage the development of its local entrepreneurial ecosystem. Nomu’s less stringent requirements make it an attractive option for SMEs, fostering broader participation in the stock market and expanding investment opportunities across a wider range of sectors, including materials and professional services.
Looking beyond IPO counts and capital raised, MENA’s capital markets are gaining traction on multiple fronts, boosted by a combination of regulatory reforms, government initiatives, and a clear emphasis on sustainability. These measures are particularly evident in the UAE, which is set to enact a comprehensive ESG mandate by mid-2025. Under this mandate, all companies, including those operating in free zones, will be required to monitor and disclose their carbon emissions and implement decarbonization strategies. This regulatory shift not only positions the UAE as a leader in climate-conscious finance but also enhances the appeal of UAE-based exchanges to global investors focused on sustainable and responsible investment practices.
Egypt’s stock market also showed signs of resurgence, with the EGX30 index climbing by over 26% since the beginning of 2024. This growth comes after an extended period without IPOs on the Egyptian Exchange (EGX), which last saw a new listing in 2022. The third-quarter IPO marked a breakthrough for EGX, signaling renewed investor confidence and the exchange’s potential to attract listings from sectors poised for growth, particularly amid Egypt’s ongoing economic reforms aimed at revitalizing its capital markets.
Looking ahead, MENA’s IPO pipeline remains promising, with approximately 16 additional listings anticipated by the year-end across various exchanges in the region. This projection includes both private companies and sector-specific funds, indicating that MENA’s IPO momentum is likely to carry into 2025. The outlook also reflects confidence among businesses and investors despite the geopolitical uncertainties that traditionally impact the region. As evidenced by the current pipeline, sectors ranging from renewable energy to technology are expected to lead the way, with companies such as LuLu Group International in Abu Dhabi and Talabat Middle East in Dubai preparing to go public.
